Chapter 6 - Economic Growth

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School

Ryerson University

Department

Economics

Course

ECN 204

Professor

Thomas Barbiero

Semester

Winter

Description

Chapter 6 – Economic Growth
6.1 Economic Growth
• Economists define and measure economic growth as either:
o An increase in real GDP occurring over some time period
o An increase in real GDP per capita occurring over some time period
Real GDP per capita
The real GDP per person, found by dividing real GDP by a country’s population
Economic Growth as a Goal
Growth is a widely held economic goal: some critics, but more agree with the desired
results of economic growth and the resultant increase in the standard of living
Growth lessens the burden of scarcity: bigger pie generally means most get a bigger
piece
6.2 Modern Economic Growth
The historically recent phenomenon in which nations have experienced sustained
increases in real GDP per capita – starts with the Industrial Revolution about 250
years ago
Economic growth has vastly affected cultural, social, and political arrangements
o Culturally: for the first time in history ordinary people have significant time
for leisure activities and the arts
o Socially: has allowed for universal public education, elimination of ancient
social norms and legal restrictions against women and minorities doing
certain jobs or holding certain positions
o Politically: countries experiencing modern economic growth have tended to
move toward democracy
o Average human life has doubles from less than 30 years to almost 80
The uneven distribution of growth
Modern economic growth has spread slowly from its British birthplace
First advanced to France, Germany, and other parts of Western Europe in the early
1800s before spreading to Canada, USA, and Australia by the late 1800s
Japan began to industrialize in the 1870s
www.notesolution.com The rest of Asia didn’t follow until the late to mid 1900s, at which time large parts of
Central and South America as well as the Middle East also began to experience